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Binance receives an upgraded category 4 license in Bahrain

Binance
TL;DR Breakdown
  • Binance Bahrain becomes the first cryptocurrency-asset service provider to be granted a complete Category 4 license in Bahrain.
  • The Category 4 license will allow Binance Bahrain to offer a wide range of services related to crypto-asset exchange services.

Binance has undoubtedly established the tone for the cryptocurrency world. As a crypto exchange, Binance has achieved global dominance. On the other hand, the crypto exchange has served as a worldwide government consultant on crypto legislation and adoption.

On May 26, 2022, Binance, the world’s most popular blockchain and cryptocurrency infrastructure provider, announced that Binance Bahrain had been granted a Category 4 license as a crypto-asset service provider (CASP) by the Central Bank of Bahrain (CBB). Binance Bahrain is the first crypto exchange in Bahrain to be licensed as a category 4 entity by the CBB. It’s able to provide a comprehensive crypto-exchange package in Bahrain thanks to its authorization. 

Binance Bahrain acquires a full category 4 license in the Kingdom of Bahrain

In March 2022, The Central Bank of Bahrain granted Binance a license to provide crypto trading, custodial, and portfolio management services, according to Cryptopolitan. This was a major step forward for the exchange as it attempts to establish itself throughout the Middle East and across the world.

Binance got granted preliminary approval for a license in December, but it had to complete the whole application procedure before receiving the entire document. The license allowed Binance to offer services to both institutional and retail investors in Bahrain.

The upgrade to a Category 4 license in the Kingdom of Bahrain is a landmark achievement for Binance and further signifies our commitment to being a compliance-first exchange. This will allow us to provide the full suite of products and services that users have come to expect from an exchange, in a safe and well-regulated environment. We are grateful to the Central Bank of Bahrain for their support and vision in granting Binance Bahrain this license. Bahrain is well on the path to becoming a leading global hub for crypto.

Richard Teng, Head of MENA at Binance.

The Central Bank of Bahrain (CBB) is a public corporation founded and established on September 6, 2006. The CBB is responsible for monetary and financial stability in Bahrain, replacing the Bahrain Monetary Agency (BMA). The CBB is responsible for Bahrain’s monetary and foreign exchange policies, government reserves, and debt issuance and controls the country’s currency as well as any other typical central bank.

It also provided a practical regulatory framework for crypto financial services firms in Bahrain wanting to work with cryptocurrency. Binance cryptocurrency exchange met the criteria. The licensing grant makes Bahrain a prominent global center for cryptocurrency in the region. The Category 4 license will allow Binance Bahrain to provide crypto-asset trading services to clients under the watchful eye of the Bahrain authorities.

Binance dominates global economic markets

Binance’s financial dominance can be felt throughout the cryptocurrency sector, especially during the downfall of Terra Luna and UST. The crypto exchange expressed its desire to work with the Terra team to create a new blockchain without an algorithmic stablecoin.

The crypto exchange temporarily stopped trading Terra’s LUNA and UST after validators halted the blockchain, causing trades to become impossible. However, following Terra’s announcement, the exchange tweeted its backing for Terra. This implies that the Terra community approved an initiative known as ‘Rebirth Terra Network.’

The exchange stated that it is cooperating with the Terra team on a recovery strategy to provide harmed users on Binance with the best possible care.

Last year, the exchange got attacked by regulators in multiple countries, including the United Kingdom, Japan, and Israel. Since then, it has been hiring from the ranks of former regulators to improve its compliance department.

In addition, the firm has been increasing its operations in the Middle East. In March, it received a limited operating license in Dubai and provisional permission to operate as a broker-dealer in Abu Dhabi, the UAE’s capital city.

As the cryptocurrency exchange leaves its mark on the contemporary economic age, some of its former executives have gone on to found successful crypto companies independently. A $100 million venture fund got formed by a group of the former management of cryptocurrency exchange executives. 

Ling Zhang and Wayne Fu, formerly Binance’s vice president of M&A and head of corporate development, created Old Fashion Research. The fund got funded by venture capital firms, family offices, and angel investors. Moreover, it will concentrate on the metaverse and increasing cryptocurrency adoption in developing areas such as Latin America and Africa.

The initiative has been operating in concealment until now. It has, however, invested in over 50 blockchain projects to date, including blockchain analytics platform Nansen and trading platform WOO Network, movement-to-earn NFT game Genopets, and Africa’s most prominent gaming community, Metaverse Magna.

In recent weeks, a slew of mega-funds have entered the cryptocurrency market, which demonstrates that despite the fact that prices are down, venture capitalists are taking advantage of the sentiments and continuing to invest in it. Despite the dire conditions that have developed in the crypto marketplaces over several weeks and months, traders and investors do not appear overly spooked.

Florence Muchai

Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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